- Posted By Prince Lakshman
If you’ve been updating yourself about the real estate market lately, you are probably aware that vacant land is becoming much more difficult to find. Although this is the case, a house and land package remains a desirable and affordable option for buyers looking to step a foot into the property market.
What makes a house and land package appealing to homebuyers?
- The freedom to select a design that suits you
For most home owners, having a house and land package means they have the freedom to choose a design that will meet their needs, on a considerable block of land.
In simple terms, when you buy a house and land package, you get a land with a pre-designed new house built on it.
The purchasing process on this one is rather short, cheap, and simple, as you won’t have to buy a land from developers and then have to find for another builder to build your desired home.
- It costs less than a custom build
Most house and land package are on offer at a fixed-price. The purchasing process, now being simplified, saves the buyer more money and time.
“A house and land package generally provides better value than an existing house in the same area, as it will likely cost less than a custom build and you are buying a brand new home with modern fittings and fixtures,” says Adam Jian, Director at Linden Wise.
- The home will be ready for occupancy
You can choose to move into your new home with minimum inclusion or have the entire house ready to live in once completed.
A turnkey house has all the inclusions or typical white goods such as cooktop and oven in the kitchen, taps and toilets in the bathrooms, water heater, and fences among others all in place before you move in.
- Grants and Deductions Eligibility
Some buyers may be able to benefit from First Home Owner Grant and stamp duty concessions.
Some territories like New South Wales, only asks buyers to pay stamp duty on the land portion. Eligible first home owners buying a vacant block of residential land will pay no stamp duty on vacant land valued up to $350,000, and will receive concessions on stamp duty for vacant land valued between $350,000 and $450,000.
The government also provides a $10,000 First Home Owners Grant for building a new home that is up to $750,000 combined land and building value. Investors may also be able to claim a tax deduction as newly built properties depreciate at a faster rate than old dwellings.